Press release
T. Rowe Price: Parents Putting On A Financial Façade Are More Reluctant To Discuss Money With Their Kids
Twelfth annual Parents, Kids & Money Survey found that parents who try to "keep up with the Joneses" are more likely to use retirement savings to cover
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":"Twelfth annual Parents, Kids & Money Survey found that parents who try to \"keep up with the Joneses\" are more likely to use retirement savings to cover holiday spending\n\n\nBALTIMORE, Dec. 17, 2020 /PRNewswire/ -- T. Rowe Price's 12th annual Parents, Kids & Money Survey, which sampled more than 2,000 parents of 8- to 14-year-olds and their kids, revealed that families who try to \"keep up with the Joneses\" are more reluctant (62% vs. 30%) to have money conversations with their kids and more likely to have risky financial behaviors and habits. Overall, many parents reported having some reluctance discussing financial topics with their kids (41%). \n \n\"Discussing money with kids is particularly important in the midst of the coronavirus pandemic, when many families have been affected—from smaller consequences like a canceled vacation to a parent who has lost a job,\" says Roger Young, CFP®, a senior financial planner at T. Rowe Price. \"While parents may question their ability to teach money topics, they can take comfort that there are resources available to help them. Parents who put on a financial façade could especially benefit from these resources, as we see an increased reluctance among them to discuss money with their kids.\" \nTo help parents discuss money with their kids, the firm created MoneyConfidentKids.com, which provides free online games for kids; tips for parents that are focused on financial concepts, such as goal setting, spending versus saving, inflation, asset allocation, and investment diversification; and classroom lessons for educators. The site also includes a newly created student workbook and teaching guide, in partnership with Scholastic, designed to make money concepts more accessible and relatable to life's milestones. \nPUTTING UP A FINANCIAL FAÇADE \nKeeping up with the Joneses: Thirty-five percent of parents surveyed said they are always trying to \"keep up with the Joneses.\" Of those, 53% said they hide purchases from their spouses, 60% have a budget but rarely follow it, 59% rely on credit cards to cover monthly expenses, and 72% live paycheck to paycheck. More likely to pull from retirement and college savings: Those who try to keep up with the Joneses were three times more likely to have taken money from their retirement savings at least twice during the past two years. They are also five ...